Financials Alkem Laboratories Limited Bombay S.E.

Equities

ALKEM

INE540L01014

Pharmaceuticals

Market Closed - Bombay S.E. Other stock markets 03:30:49 17/05/2024 pm IST			5-day change	1st Jan Change
5,440 ^INR	+2.32%		+7.35%	+4.77%

16/04	Alkem Laboratories Limited Receives A Demand Order Levying A Penalty of INR 35,099 State Tax Officer, Ghatak	CI
28/03	Alkem Laboratories Forms Subsidiary for Medical Devices Business	MT

Valuation

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	2,09,340	2,78,090	3,31,171	4,32,909	4,06,055	6,50,159	-	-
Enterprise Value (EV) ¹	2,11,750	2,83,796	3,28,603	4,33,805	3,93,853	6,31,507	6,22,303	6,15,784
P/E ratio	27.5 x	24.7 x	20.9 x	26.3 x	41.3 x	35.5 x	30.2 x	26.2 x
Yield	0.91%	1.07%	1.01%	0.94%	0.74%	0.82%	0.92%	1.03%
Capitalization / Revenue	2.85 x	3.33 x	3.74 x	4.07 x	3.5 x	5.03 x	4.57 x	4.15 x
EV / Revenue	2.88 x	3.4 x	3.71 x	4.08 x	3.4 x	4.89 x	4.38 x	3.93 x
EV / EBITDA	19 x	19.3 x	16.9 x	21.1 x	24.5 x	27.7 x	23.7 x	20.5 x
EV / FCF	85.3 x	120 x	30.4 x	55.4 x	27.1 x	47.8 x	40.1 x	33.7 x
FCF Yield	1.17%	0.84%	3.29%	1.81%	3.69%	2.09%	2.49%	2.96%
Price to Book	3.85 x	4.51 x	4.49 x	5.01 x	4.49 x	6.37 x	5.52 x	4.81 x
Nbr of stocks (in thousands)	1,19,565	1,19,565	1,19,565	1,19,565	1,19,565	1,19,565	-	-
Reference price ²	1,751	2,326	2,770	3,621	3,396	5,438	5,438	5,438
Announcement Date	30/05/19	05/06/20	25/05/21	13/05/22	19/05/23	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	73,572	83,444	88,650	1,06,342	1,15,993	1,29,165	1,42,218	1,56,516
EBITDA ¹	11,148	14,734	19,424	20,529	16,094	22,807	26,224	30,080
EBIT ¹	9,216	12,206	16,678	17,490	12,990	19,851	22,981	26,607
Operating Margin	12.53%	14.63%	18.81%	16.45%	11.2%	15.37%	16.16%	17%
Earnings before Tax (EBT) ¹	9,547	12,598	18,421	18,443	13,048	21,419	25,205	29,445
Net income ¹	7,605	11,271	15,850	16,456	9,842	18,687	21,671	25,035
Net margin	10.34%	13.51%	17.88%	15.47%	8.48%	14.47%	15.24%	16%
EPS ²	63.61	94.26	132.6	137.6	82.31	153.1	180.1	207.3
Free Cash Flow ¹	2,482	2,374	10,804	7,830	14,528	13,225	15,512	18,246
FCF margin	3.37%	2.85%	12.19%	7.36%	12.52%	10.24%	10.91%	11.66%
FCF Conversion (EBITDA)	22.27%	16.12%	55.62%	38.14%	90.27%	57.98%	59.15%	60.66%
FCF Conversion (Net income)	32.64%	21.07%	68.17%	47.58%	147.62%	70.77%	71.58%	72.88%
Dividend per Share ²	16.00	25.00	28.00	34.00	25.00	44.47	49.99	55.91
Announcement Date	30/05/19	05/06/20	25/05/21	13/05/22	19/05/23	-	-	-

¹INR in Million²INR

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: March	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4
Net sales ¹	23,180	21,922	27,314	28,000	26,190	24,839	25,764	30,794	30,409	29,026	29,677	33,575	32,679	31,959
EBITDA ¹	5,291	2,911	5,929	6,244	4,985	3,372	2,032	4,539	5,990	3,532	3,892	5,371	6,025	4,634
EBIT ¹	4,601	2,226	5,223	5,516	4,210	2,541	1,270	3,765	5,206	2,749	3,168	4,722	5,200	4,496
Operating Margin	19.85%	10.15%	19.12%	19.7%	16.07%	10.23%	4.93%	12.23%	17.12%	9.47%	10.67%	14.06%	15.91%	14.07%
Earnings before Tax (EBT) ¹	5,434	2,582	5,561	5,815	4,639	2,427	1,519	4,023	5,389	2,117	3,528	4,800	5,500	4,596
Net income ¹	4,510	2,400	4,681	5,443	5,257	1,076	1,276	3,308	4,547	709.8	2,867	4,005	4,711	3,682
Net margin	19.45%	10.95%	17.14%	19.44%	20.07%	4.33%	4.95%	10.74%	14.95%	2.45%	9.66%	11.93%	14.42%	11.52%
EPS	37.72	20.07	39.15	45.52	43.96	9.000	10.68	27.67	38.03	-	-	28.50	-	34.00
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	05/02/21	25/05/21	06/08/21	12/11/21	04/02/22	13/05/22	05/08/22	11/11/22	10/02/23	19/05/23	10/08/23	-	-	-

¹INR in Million

Estimates

Balance Sheet Analysis

Fiscal Period: March	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	2,410	5,705	-	896	-	-	-	-
Net Cash position ¹	-	-	2,569	-	12,202	18,652	27,855	34,375
Leverage (Debt/EBITDA)	0.2162 x	0.3872 x	-	0.0437 x	-	-	-	-
Free Cash Flow ¹	2,483	2,374	10,805	7,830	14,528	13,225	15,512	18,246
ROE (net income / shareholders' equity)	14.8%	19.4%	23.4%	20.7%	15.9%	18.6%	18.9%	18.8%
ROA (Net income/ Total Assets)	9.58%	12.4%	14.8%	13%	10.1%	13.1%	13.5%	14%
Assets ¹	79,369	90,761	1,07,324	1,26,892	97,269	1,42,410	1,60,410	1,79,047
Book Value Per Share ²	455.0	515.0	617.0	723.0	757.0	854.0	985.0	1,130
Cash Flow per Share ²	65.00	48.90	106.0	92.90	141.0	84.70	119.0	150.0
Capex ¹	5,269	3,476	1,845	3,280	2,297	3,506	3,714	3,887
Capex / Sales	7.16%	4.17%	2.08%	3.08%	1.98%	2.71%	2.61%	2.48%
Announcement Date	30/05/19	05/06/20	25/05/21	13/05/22	19/05/23	-	-	-

¹INR in Million²INR

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Alkem Laboratories Limited

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

5,438 INR

Average target price

5,200 INR

Spread / Average Target

-4.37%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

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